Transactional Leader–Member Exchange Relationships and Followers’ Work Performance

Abstract

In this study, we test whether leader political skill moderates the relationship between more transactional leader–member exchange (LMX) relationships and follower work performance. A field study was conducted among 753 followers and 153 leaders from several Norwegian business organizations. The results showed that the negative relationship between more transactional LMX relationships and follower work performance was weaker for employees with a highly politically skilled leader. Thus, leader political skill seemed in part to mitigate the negative effects of transactional LMX. This is an important observation, since finding alternative routes to enhanced work performance of followers in less favorable transactional LMX relationships is essential. Implications for future research and practice are discussed.